sports
LIV and let die: golf rebels count cost of Saudi cutbacks and other sports fear worst
Public Investment Fund withdraws support for rebel tour and other sports could be hit too with Newcastle United uncertain
TL;DR
- LIV Golf executives met in New York amid reports of the Saudi Public Investment Fund (PIF) withdrawing financial support.
- Saudi Arabia has invested over $10 billion in sports over the past five years, with more than $5 billion going to LIV Golf.
- Other sports like football, boxing, motorsport, tennis, Esports, and mixed martial arts also rely heavily on PIF funding.
- Saudi Arabia claims its sports investment is part of Vision 2030, aiming to diversify its economy and bring domestic benefits.
- PIF's new strategy focuses on investments delivering financial returns and long-term economic and public health benefits.
- Football, particularly the Saudi Pro League, is seen as a better long-term investment, with plans to privatize club stakes.
- Esports, boxing, MMA, and motorsport are expected to continue receiving investment due to specific strategic reasons.
- LIV Golf's profitability is uncertain, with the tour potentially needing another decade to break even.
- Newcastle United, benefiting from PIF investment, has received assurances but faces uncertainty regarding future stadium development due to financial rules.
- The withdrawal of LIV support is partially blamed on global uncertainty, but suspicions of strategic plays for insurance reasons exist.